RSA has agreed to sell its UK direct Home and Pet personal lines insurance operations to Admiral Group.
Under the agreement, RSA, a subsidiary of Canada’s Intact Financial, will also transfer new business franchises, as well as certain operations, brands, data, renewal rights and some 300 personnel, to Admiral.
Following completion, Admiral will pay £82.5m (C$140.73m) to RSA, with a potential further payment of up to £32.5m, subject to certain conditions.
Through the deal, Admiral aims to diversify its products portfolio, strengthen its home business and support its direct pet offering, which was launched in 2022.
In 2022, RSA’s direct UK Home and Pet personal lines reported around £165m in gross written premiums.
Admiral Group CEO Milena Mondini de Focatiis said: “Increased scale in home and pet not only supports Admiral’s diversification strategy, but also supports our aim to provide customers with a stronger multi-product offering, choice and convenience. We look forward to welcoming our new colleagues and the additional expertise they bring. With this acquisition, we continue to fulfil our purpose to help more people look after their future.”
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By GlobalDataFor Intact Financial, the deal forms part of efforts to focus on commercial and specialty lines operations in UK.
RSA will retain its personal lines operations in Ireland, where it also offers commercial insurance, as well as home and auto insurance.
Furthermore, RSA will terminate its partner and broker contracts for UK home and pet services, which represent yearly premiums of around £515m.
The company is currently investigating the possibility of either transferring those contracts to another party or allowing them to expire.
Intact Financial CEO said: “The exit from the UK personal lines market sharpens RSA’s focus as a leading UK commercial and specialty lines player, accelerating our ability to deliver sustainable outperformance in the UK & Ireland segment.”
In September this year, Intact Financial and RSA reached an agreement to acquire commercial lines operations of Direct Line Insurance, a UK-based company, in a deal valued at £550m.
